Extending gains against the American currency for the third consecutive day, the rupee on Friday ended at 67.05 to the dollar, two paise higher, on persistent selling of the greenback by banks and exporters in view of sustained foreign capital inflows into equities.

A recovery in the domestic equity market also boosted the rupee value against the dollar, a forex dealer said. Intraday, the rupee hovered in the 66.94-67.25 range.

It has gained by 30 paise, or 0.45 per cent, in three days.